Billing errors make energy companies ‘£650m a year’
21/11/2013
It has been revealed in an independent survey that energy companies are making at least £650m a year due to errors in the billing process.
The survey, which was administered by consultancy firm Consumer Intelligence, revealed that the average overcharge error stands at £121 and affects as many as 28pc of customers in the UK. A total of 2,000 people responded to the survey and 30pc, almost one-in-three, found that there had been an error with their bill. However, 40pc of people who receive paper bills noticed that there was an error present, compared to just 29pc of those who receive their bills online. While this is not a case of energy companies making more mistakes with customers they send paper bills to, it is evident that those who do receive paper bills check the bill more thoroughly than those who get their bill electronically.
Clare Welton, from the Fuel Poverty Action campaign group, has slammed energy suppliers, for what she considers ‘daylight robbery’ at a time when energy prices have been hiked by most suppliers. She said: “This daylight robbery disguised as sloppy service from energy companies is yet another blow to the idea that the big six, or any bodies that put profit before people’s needs, are in any way suitable to be running our energy system”.
This is not the first time that the energy industry has been caught up in questions over its integrity to customers. The Guardian newspaper reported earlier this month that npower, one of the largest suppliers in the UK, owed customers more than £400m after a series of Direct Debit overpayments. Another major supplier, British Gas, was also found to owe customers, who had built up credit in their accounts over £20m at one time.
If you’re looking for a cheaper energy deal, you can compare what you’re currently paying to other deals on the market at uSwitch.
Share this..
Related stories
MPs expenses debacle continues
As the Daily Telegraph promised, further revelations about MPs expenses have been released into the public domain showering yet more shame and disgust on UK political scene. While, as we keep being told, "all expenses are within the rules" there is greater taxpayer fury across the UK than ever before. It seems as though a new wave of political change is hitting the UK after years of secrecy and ex...
Read MoreEast Coast main line fares to rise by 5%
Despite the fact that there is already a strict pricing formula in place for the UK rail network it seems that the UK government were blast this to pieces with a 5% increase in fares on the East Coast main line. This is the franchise which was given up buying National Express, after the company failed to balance its books, and has now reverted back to government control.
Even though...
When do you start teaching your children about finance?
There are many areas of the UK education system which attract differing opinions but one where there seems to be a consensus of opinion is the area of finance and the fact that children should be taught about money at an early age. We are not talking about investment or business, just what money is, how you use it and what it can do for you. By adding this subject at a very early age we should s...
Read MoreEnergy Bills Set For A Massive Rise
To date there has been much speculation about the future level of household energy prices with many observers criticised for suggesting that bills could rise by as much as 40% over the rest of 2008. Unfortunately, after representations to the commons committee by Dr Paul Golby, the chief executive of E.ON UK, it seems as though this much rumoured 40% rise may not be too far from the truth.
...
Are UK energy prices set to fall?
Despite recent attempts to decouple the UK energy market from the oil sector there is now growing pressure on UK energy providers to reduce costs. After a report from the International Energy Agency today we saw a significant reduction in the price of oil which is now around $50 a barrel. The report suggested that oil consumption in 2009 could fall by as much as 2.4 million barrels a day, heaping...
Read More